401k

I retired and called to rollover my 401k and Vanguard told me that FedEx requires them to hold my 401k monies for 45 days. I do not understand how this is even legal. The good thing was, and would advise all retires to do, is roll over your 401k before you retire. In this way they only require to hold 20% of your monies. I fail to see the reasoning behind this. Can anyone explain this to me. And the Vanguard person said this is a FedEx requirement. My financial guy has never heard of this before.

I'm sorry I can't explain it, but this just goes to show that FedEx continues to screw with you even after you've departed "the firm". They're like rabbits in that they just can't ever seem to stop screwing.

I retired and called to rollover my 401k and Vanguard told me that FedEx requires them to hold my 401k monies for 45 days. I do not understand how this is even legal. The good thing was, and would advise all retires to do, is roll over your 401k before you retire. In this way they only require to hold 20% of your monies. I fail to see the reasoning behind this. Can anyone explain this to me. And the Vanguard person said this is a FedEx requirement. My financial guy has never heard of this before.

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When I quit in 2013 my mgr said they shouldn't take more than a few weeks to cut me a check. Obviously I should have done my due diligence, it was a problem for me. Also whether you receive the traditional pension or the portable pension you have to contact the Retirement Service Center 3 months in advance of your retire date. As far as I know whether it's Vanguard or the portable pension lump sum 20% is what they take up front.

When I quit in 2013 my mgr said they shouldn't take more than a few weeks to cut me a check. Obviously I should have done my due diligence, it was a problem for me. Also whether you receive the traditional pension or the portable pension you have to contact the Retirement Service Center 3 months in advance of your retire date. As far as I know whether it's Vanguard or the portable pension lump sum 20% is what they take up front.

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They will withhold 20% if you take a distribution but there is no withholding if you do a rollover to another retirement account.

They will withhold 20% if you take a distribution but there is no withholding if you do a rollover to another retirement account.

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AND, on the 46th day while rolling 401 over. You can take a one time withdrawal without paying any penalties, although you will be taxed as income. Rules are 55 and older and you must quit the company.

you wont be taxed with a direct rollover from one retirement account to another. vanguard should be able to help you with that. I think and correct me if I am wrong that they should only withhold 20 % if you are making a withdrawal or a distribution.

a DIRECT rollover is an electronic transfer from your retirement to another IRA or retirement vehicle.

I retired and we have our 401k with prudential and they told me I can keep my account with them and do not have to do a rollover so that is what im going to do. I will probably do partial rollovers to vanguard .( if that is possible )

I also have my IRA with vanguard for years and think they are the best.